Mining for diamonds is one of Arkansas' most well-known activities. As the only state in the U.S. with a publicly accessible diamond mine, visitors can try their luck digging for treasure.
But diamonds aren’t the only valuable thing found in Arkansas! The state also offers real estate opportunities for foreign investors looking to earn income from rental properties. In this guide, we’ll walk you through everything you need to know about buying property in Arkansas and the financing you need to turn your investment goals into reality.
We are providing the following discussion to you for informational purposes only. All investments, including real estate, involve risk, and we encourage you to invest carefully. The information in this article is not intended to replace or serve as a substitute for any legal, real estate, tax, or other professional advice or service. You should consult with a professional in the respective legal, tax, accounting, real estate, or other professional area before making any decisions or entering into any contracts relating to a rental property.
Foreign buyers who want to invest in rental properties in Arkansas can use DSCR (debt-service-coverage-ratio) loans. These loans focus on the property's income potential instead of the investor’s personal finances.
A DSCR loan is different from a traditional mortgage. Instead of requiring proof of personal income, lenders look at the expected cash flow from the property.
These loans are part of the non-qualified mortgage (non-QM) category, making them an option for foreign nationals who want to buy U.S. real estate without living in the country. Because approval is based primarily on the property’s ability to generate income, DSCR loans help international investors overcome financial and legal challenges when entering the U.S. market.
For non-U.S. residents, DSCR loans make it easier to buy rental properties in Arkansas. Key advantages include:
With a DSCR loan, foreign investors can buy rental properties in Arkansas with fewer obstacles.
Lenders consider several factors when reviewing DSCR loan applications1. Knowing these requirements can help simplify the process and improve approval chances.
Most lenders: Many U.S. lenders prefer income earned within the country because it’s easier to verify. Foreign income may require extra paperwork, such as translated bank statements, salary proof, and U.S. tax returns if available. Even with full documentation, approvals can be difficult due to unfamiliarity with international financial systems.
Waltz: We know income sources can vary. Whether your earnings come from the U.S. or abroad, we accept a wide range of documents, including foreign bank statements, employer pay slips, and rental income. We also consider the rental potential of the property you’re buying, ensuring a more complete evaluation.
Most lenders: Foreign investors are often required to put down 30-50% of the property’s price. Some lenders also require extra cash reserves to cover unexpected costs, making the upfront investment higher.
Waltz: We offer more flexibility. While a 30% down payment is standard, qualified borrowers may be eligible for a lower 25% requirement. We also adjust reserve fund expectations based on your financial situation and the property’s income potential.
Most lenders: A valid passport and visa are usually required for identification. If buying as an investor, lenders may also require the formation of a U.S.-based LLC, which includes submitting an operating agreement and other business documents.
Waltz: We keep this step simple. A passport is all that’s needed for identification. If an LLC is required, our Investor Toolkit provides step-by-step guidance, including how to quickly obtain an Employer Identification Number (EIN).
Most lenders: U.S. lenders rely on domestic credit scores, making financing difficult for foreign investors without U.S. credit history, even if they have strong credit in their home country.
Waltz: We recognize that building U.S. credit takes time. Instead of requiring a domestic credit score, we assess your home country’s credit profile along with other financial factors to ensure a fair evaluation.
Find out how international investors have benefited from working with Waltz.
Arkansas offers a variety of investment opportunities, with property types suited to different strategies. The right choice depends on your financial goals and lender requirements. Here are some common property types to consider:
While it may lack the allure of big-budget states on the East and West coasts, Arkansas has a lot in store for foreign investors. Here are three reasons to consider purchasing an investment property in Arkansas:
As the capital and largest city in Arkansas with over 200,000 people, Little Rock offers a diverse real estate market with opportunities for long-term and short-term rentals. It is home to major employers like Dillard’s and the University of Arkansas for Medical Sciences, ensuring a consistent demand for housing from professionals, students, and medical staff. The city's downtown area has seen ongoing revitalization efforts, increasing its appeal to tenants and investors alike.
Bentonville is a prime investment location, driven by its strong economy and high-income residents. Home to Walmart’s corporate headquarters, the city attracts professionals and fuels job growth, contributing to an 80% increase in STEM jobs across Northwest Arkansas. Bentonville ranks #2 in the state for public schools, making it a desirable place for families and long-term tenants. And while Bentonville has the highest cost of living in Arkansas, its residents have a median household income exceeding $100,000. All of these factors point to a thriving upscale rental market.
Hot Springs, known as “Spa City,” is a top tourist destination thanks to its natural thermal baths, historic downtown, and Hot Springs National Park. Tourism has grown 7.4%, driving demand for short-term rentals year-round. The city also benefits from a strong local economy supported by Oaklawn Racing Casino Resort, a vibrant arts scene, and outdoor recreation. With median property prices around $240,000, Hot Springs offers an affordable entry point for investors looking to capitalize on the vacation rental market.
Fayetteville is a rapidly growing city, driven by the University of Arkansas, which had over 33,000 students in 2024, along with faculty and staff who fuel demand for rental housing. The city's economy is expanding, particularly in tech and startups, attracting professionals and entrepreneurs. In 2023, Fayetteville surpassed 100,000 residents for the first time, one of only four U.S. cities to do so that year. With projections estimating Northwest Arkansas will reach 1 million residents by 2050, the demand for housing will only increase. This combination of students, job growth, and population expansion makes Fayetteville a strong market for real estate investors.
Springdale is one of America’s fastest-growing cities, driven by Tyson Foods’ corporate headquarters and a rapidly expanding manufacturing sector. Located between Fayetteville and Bentonville, the city benefits from Fayetteville's college town vibe and Bentonville's booming infrastructure. The area has experienced significant growth, and with a projected $24M economic investment from Central States Manufacturing in 2025, the city's future looks bright.
Like any other state, there are certain considerations to keep in mind when considering whether it’s worth it to buy real estate in Arkansas. Here are four things to keep in mind:
Refinancing your Arkansas investment property means replacing your current mortgage with a new one. Whether you’re looking to reduce interest rates or free up capital for new investments, here’s what the refinancing process typically includes:
A rate-and-term refinance lets you change the terms of your current mortgage. This can help you get a lower interest rate or a loan structure that better fits your financial goals. While reducing your monthly payments can improve cash flow, the total loan cost over time may still be higher, depending on the new terms.
A cash-out refinance allows foreign investors in Arkansas to use their property’s equity by borrowing more than what they currently owe. The extra funds can go toward renovations, buying additional properties, or other financial needs. This option helps investors grow their real estate portfolio without taking out a separate loan.
Learn more about refinancing.
Arkansas offers diverse real estate investment opportunities, from bustling cities like Little Rock to growing rental markets in Fayetteville and Bentonville. At Waltz, we make securing a DSCR loan simple. Follow these steps:
1. Find a profitable investment
Decide on your investment strategy, whether it’s a long-term rental, short-term vacation rental, or future resale opportunity. Select a property that fits your budget and financial goals.
2. Gather essential documents
Prepare key paperwork, including a valid passport, proof of income (such as bank statements or pay slips), and details about the property you’re purchasing. Having these documents ready will speed up the process.
3. Select a lender experienced with foreign nationals
Choose a lender who understands the unique challenges international investors face. Waltz specializes in helping foreign buyers navigate U.S. mortgage requirements with tailored solutions.
4. Set up an LLC and U.S. bank account
Most investment properties require you to form a U.S.-based LLC and open a local bank account. This process is simple, and Waltz can assist with setting up your LLC and obtaining an Employer Identification Number (EIN).
5. Submit your loan application
Once your paperwork is ready, submit your DSCR loan application. Double-check that all forms are accurate to avoid delays.
6. Perform due diligence
Before finalizing the purchase, inspect the property, verify its market value, and review the loan terms carefully. This step helps ensure the investment meets your expectations.
7. Complete the purchase process
After meeting all requirements, sign the final paperwork, transfer the funds, and officially secure your Arkansas investment property. Congratulations!
